Pay raises

[winnieb]

We had a meeting today regarding a new program to determine pay increases. Prior to this meeting my company has always given random raises based on whatever the manager thought was fair. With the new program all jobs were assigned a grade scale and raises will be given based on a matrix.

Here is my issue, and I would like everyones thoughts. If you are currently at the high end of the matrix and any increase would put your salary outside of the top pay level-- you do not receive a raise. My question for the hr manager was "beyond the desire to do well, what is the incentive to perform" The response I received was r"aises are a privledge, not a right. If you are at the top end of the scale you need to figure out if the benefits, people, environment are worth staying without an increase. If not, then you have a decision to make." She also said that the managers would work on fiding ways to provide internal incentives, such as cross training --"mental enrichment" is what she called it.

Does this seem like a logical response from an HR manager? Why should someone perform if they will not receive a raise? With no pay increase why would anyone want to learn a new job--only to make you more valuable to the compnay w/o the reward.

wendi